Experts share upcoming finance trends and what they mean for leadership

Are you ready to traverse unchartered territory with your finance team? Robert Half’s sister company, Protiviti, recently released a report that amalgamated responses from over 950 finance and accounting leaders worldwide to identify emerging trends. The 2024 Global Finance Trends Survey Report has revealed key challenges and considerations across topics like cyber security, cost optimisation, ESG, the use of AI in finance, and how the finance team's role is evolving to meet changing business needs.

Download the report now

Chris Wright (managing director and global finance transformation and transaction services solutions lead) and Andrea Vardaro Thomas (managing director, finance transformation, and business planning & analysis lead) shared their insights on key themes from the latest report. Together, they highlight how finance leaders can prepare for the future.

Data security and privacy: building vital resilience into finance operations

The new report revealed that data security and privacy are top concerns for CFOs and finance leaders worldwide. New global cybersecurity disclosure rules mean executives will need to be much more transparent about cyber incidents, leading many to focus on developing new reporting frameworks for cyber incidents and their financial impact.

"Cyber is expensive. Finance leaders are concerned about protecting the company's financial and non-financial data at a practical level. If there's a breach, they have to be part of helping the company deliver a prompt, holistic and effective response,” Chris says.

Andrea agrees, adding, "As companies are looking to use more advanced analytical tools and AI, it's advisable to ensure a culture of data privacy internally, where mindfulness across the organisation is just as important. This extends to new policies around the use of ChatGPT and other similar platforms where your data can be accessed if unwittingly used by employees. So, a healthy culture of data governance is key."

Learn more: Assessing CFO and finance leader perspectives

Artificial intelligence in business: using generative AI to fire up financial forecasting and process automation

Currently, 34% of finance organisations are already adopting generative AI for tasks like process automation (61%), financial forecasting (57%), and risk assessment (43%). Not surprisingly, public companies (with, presumably, larger operations and more resources to devote to the matter) are implementing the tech in finance processes and functions faster than private companies.

According to Andrea, the strategic benefits are myriad. Outside of leveraging built-in AI tools within software to help automate and expedite processes, she sees a significant opportunity to use a blend of both internal and external data to feed AI machine learning models. These models can help to understand trends and anomalies in large volumes of data, which helps drive future predictions and build financial forecasts more efficiently.

"Another highly beneficial use of AI is for scenario planning. Many of these AI tools can be built to analyse more complex 'what if' scenarios to help inform more timely data-driven decision making. Access to data sources, both internal and external, focused on critical business drivers can help generate robust scenario planning, which enables organisations to plan for longer-term thinking through strategy and tactics," she says.

"Such an approach can help finance partner with the organisation to drive strategy, which is where finance is moving to. As a business partner, finance can produce insightful analytics through scenario planning to inform more proactive business decisions aligned with overall company strategies, thereby allowing for greater business agility."

Tackling the growing need for environmental, social, and governance (ESG) reporting with impetus

Sustainability reporting has come to rest under the CFO’s oversight. As experts on reporting requirements and regulations and producing auditable data, they’re the most equipped to handle the challenges of typically unstructured, unstandardised ESG data.

"Leaders are preparing their organisations for the fact that assurance will be required, and who knows better than the finance organisation how to get data audited? They're the ones with the muscle memory and knowledge around how to get complete, timely, accurate and consistent data ready for auditing,” Chris says.

Finance and technology: strategies for process improvement and cost optimisation are key

"Large organisations, particularly in the energy, utilities and financial services industries, are starting to organically define an internal ESG controller role. And more often than not, the wisest move is to appoint a professional from within the business, usually from finance and accounting," says Chris.

Over half (57%) of companies report progress in technology rationalisation and cloud system adoption, the latter being viewed as key to achieving operational efficiencies. The focus is to reduce technical debt whilst investing in new technologies and more sustainable cost optimisation.

Andrea recommends starting with zero-based budgeting. “Most companies don’t begin their budgeting from zero each year. However, starting at zero allows organisations to critically examine each dollar allocated and identify unnecessary expenses, for which funds may be redirected toward higher-priority areas that align more closely with strategic goals and drive meaningful enhancements. Investments in technology modernisation, automation, digitisation, and AI are some examples,” she says.

"Although a third of the organisations we surveyed said that they are using AI in finance, about 60% of that population of users highlighted cost saving as a key benefit," says Chris. "The more users observe such benefits, the more adoption of automation there will likely be.”

How CFOs collaborate with other leaders on initiatives like sustainability and financial decision-making will drive success

Chris points out that the role of a CFO is now intertwined with many key issues across the business, including sustainability reporting. "In reporting on water and energy usage, your strategic goal likely focuses on reducing consumption and saving costs, intertwining the objectives of sustainability and cost containment,” he explains.

"Finance has the potential to be a true business partner. The FP&A team, under the CFO, is uniquely positioned to provide data-driven insights that directly link financial planning to the company’s strategy. The C-suite’s collective strategic vision is translated into financial terms through long-range plans and budgets, making finance essential in aligning financial decisions with organisational goals and driving overall business success," says Andrea.

"Finance can help drive informed decisions, supporting business arms like HR and Marketing with invaluable recommendations, such as resource planning and encouraging strategies to drive top-line growth,” she says.

Adapting to manage increasingly tech-savvy, cross-disciplinary teams is no easy task

Finance leaders can foster inclusive learning and collaboration across teams by creating multigenerational learning environments that benefit employees at all levels. “While the newer entrants to the workforce are quite capable of using AI, they don't always appreciate the risks and what the controls need to be. This is where collaboration within intergenerational finance teams breeds good results,” says Chris.

"So, if you bring together the people who are tech savvy with the people who know why, what, and how things need to be done and controlled, it should forge partnerships that actually make the departments a better work experience for everybody. There's some generational equity that can be achieved and communication that otherwise might not occur," he says.

Read more: When GENERATIONS Meet

Ultimately, successful leaders will create spaces in which everyone can be heard, respected, and included. “Educate, delegate and manage. Open it up — the table needs to be bigger for discussions,” Chris says. “In-person is increasingly being seen as a better way to do that than remotely.”

Future-proof your finance function: upskilling opportunities top the list

The 2024 Global Finance Survey highlighted upskilling as a strategic necessity, especially as finance roles continue to expand into new areas like ESG reporting and technology implementation.

Chris encourages finance professionals to move into data science as a value-added skill, "You can be a better accountant if you also have strong data science skills," he says. He also encourages upskilling in various tools and software, "Understanding how to use ecosystem tools and automation. Familiarity with the major ERPs and add-on tools for consolidations, reconciliations and the like will add a lot to a finance professional’s job profile.”

"I believe it's the analytical and strategic skill set that stands out, alongside strong business partnership and cross-functional collaboration. This means understanding key business drivers and the organisational impacts of various decisions," says Andrea.

"Communication and storytelling are now essential skills. It’s not just about having the right data; it’s also about how you tell the story and communicate the message effectively, providing more relevance and impact," she says.

Download the 2024 Global Finance Report today for more information on emerging trends, and industry shifts driving the future of finance. Listen to the Transform podcast recording on demand or explore the latest GENERATIONS report from the London School of Economics, sponsored by Protiviti.

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